Circular CONAU 1 - 1169: Transparency Information Regime - Chapter II - Commissions, Charges and Rates for Users of Financial Services

“2016 - Year of the Bicentennial of the Declaration of National Independence” COMMUNICATION “A” 5993 22/06/2016

TO FINANCIAL ENTITIES,
TO NON-FINANCIAL COMPANIES ISSUING CREDIT CARDS, TO COOPERATIVE CREDIT UNIONS (LAW 26.173), TO NON-FINANCIAL COMPANIES ISSUING PURCHASE CARDS:

Ref.: Circular
CONAU 1 - 1169
Transparency Information Regime - Chapter II - Commissions, charges and rates for users of financial services. ______

We address you to communicate the adjustments to the Transparency Information Regime, incorporating a new Chapter related to “Commissions, charges and rates for users of financial services”.

At the time of dissemination of the operational instructions that complement this Communication, the effective date of the new provisions will be disseminated.

Likewise, it is communicated that from this date, the Transparency Information Regime for Commissions and/or charges in financial products and services is repealed, with the last required submission corresponding to April of the current year.

It is informed that until the first information of this new Chapter is submitted, the duty to report provided for in point 2.5 of the “Protection of users of financial services” regulation will be considered fulfilled to the extent that the information is submitted in a PDF file to the email address gcia.eval.cargos.com@bcra.gob.ar.

Those entities that were timely exempted from the presentation of the Transparency Information Regime for Commissions and/or charges in financial products and services for not operating with users of financial services according to the definition of the current regulation, are automatically exempt from compliance with the new Chapter incorporated into the Transparency Information Regime, provided that the conditions that gave rise to such situation have not been modified.

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Finally, in accordance with the provisions disseminated through Communication “A” 5928, we inform you that the Transparency Information Regime “Universal Free Account – Holders” is cancelled.

We salute you attentively.

CENTRAL BANK OF THE ARGENTINE REPUBLIC
Ricardo O. Maero Estela M. del Pino Suárez
Principal Manager of Regulatory
Information and Information Central
General Manager of Regulatory Information and
Protection of Users of Financial Services

ANNEX

-Index
Chapter I – Transparency Information Regime - General Module
Section 1. Procedure Rules
Section 2. Deposits
a) Current Accounts – Individuals b) Savings Account c) Basic Account
Section 3. Loans
a) Credit Cards b) Mortgage Loans c) Personal Loans d) Pledge Loans e) Loans to Small and Medium Enterprises
Section 4. Transfers
Section 5. Product Packages
Chapter II – Transparency Information Regime – Module Commissions, charges and rates for users of financial services
Section 1. Procedure Rules
Section 2. Monthly Information
Subsection A. Information on nomenclature tariff Subsection B. Information on complete tariff
Section 3. Communication of tariff modifications
Subsection C. Modifications of commissions on nomenclature tariff Subsection D. Modifications of other commissions and/or charges Standard Note MONTHLY ACCOUNTING INFORMATION REGIME B.C.R.A. 15 – TRANSPARENCY INFORMATION REGIME Version: 7th COMMUNICATION “A” 5993 Validity:
23/06/2016

1. Description of the requirement.
   With monthly frequency, financial entities, non-financial companies issuing credit and/or purchase cards, and Cooperative Credit Unions (Law 26.173) must report the commissions and charges of the products and/or services they offer and market to users of financial services (according to the definition of the current regulation). Additionally, the interest rate and the quantity of products will be recorded.

Likewise, by novelty, the additions -commissions of new products and/or services they wish to market- and the increases/reductions in the commissions they wish to implement, with respect to users of financial services, will be reported. They must also report modifications to charges.

Reductions in commissions and/or charges will be reported within thirty (30) calendar days following their application.

2. General Instructions.
   2.1. Monthly Information.
   For the purpose of complying with the monthly information related to tariffs, the concept of “Current Information” will be taken into account, which is defined as the highest tariff that will be in effect during the month immediately following the presentation (E.g.: the presentation due on the tenth business day of month n, will contain the tariffs in effect from the first day of month n+1 or in case of a subsequent increase that impacts during month n+1 duly notified, the highest tariff will be reported).

In the case of information on “rates”, it must be reported -according to the specific instructions for each included product- the rate in effect on the last business day of the month immediately preceding the presentation (E.g.: the presentation due on the tenth business day of month n, will contain the rates in effect on the last day of month n-1).

The monthly information is composed as follows:
Subsection A: “Information on nomenclature tariff”.
Subsection B: “Information on complete tariff”.

MONTHLY ACCOUNTING INFORMATION REGIME
15 – TRANSPARENCY INFORMATION REGIME
B.C.R.A.
Chapter II - Section 1. Procedure Rules
Validity:
23/06/2016

2.2. Information by novelty.
Through the following Subsections, obligated subjects will report on additions -commissions of new products and/or services they wish to market- and increases/reductions in the commissions they wish to implement with respect to users of financial services. They must also report modifications to charges.

Obligated subjects must present the additions and increases referred to in the previous paragraph, considering the deadlines established by the Consolidated Text of “Protection of users of financial services” for notification to users and the application of new tariffs.

Subsection C: “Modifications of commissions on nomenclature tariff”.
Subsection D: “Modifications of other commissions and/or charges”.

2.3. Submission Format.
Subsection A: TXT format file.
Subsection B: PDF format file.
Subsection C: TXT format file.
Subsection D: PDF format file and Excel format sheet.

MONTHLY ACCOUNTING INFORMATION REGIME
15 – TRANSPARENCY INFORMATION REGIME
B.C.R.A.
Chapter II - Section 1. Procedure Rules
Validity:
23/06/2016

Specific Instructions
Subsection A: “Information on nomenclature tariff”.
The tariffs corresponding to the commissions detailed in the Information Model -Annex I-, the rates, and the quantity of products must be recorded.

For the purpose of completing this subsection, the following criteria will be applied:
Products:
Regarding the detailed products, the following will be considered:

• Savings Account in pesos: Salary Accounts, Social Security Accounts, and Special Accounts will not be considered.
• Current Account: Those associated with Salary Accounts, Social Security Accounts, and multiproduct packages will not be considered.
• Credit Cards: They will be considered as a separate service not associated with multiproduct packages for each of the following segments:
  1) Premium: includes cards with Gold, Platinum, Signature and/or Black category.
  2) International.
  3) National.
• Product Package: For each of the following segments/categories, the most representative package must be reported, that is, the one with the highest number of packages. Likewise, if the most representative category is offered at different prices, the highest tariff will be reported.
  1) Premium: comprises product packages associated with Gold, Platinum, Signature and/or Black credit cards.
  2) Basic: comprises one or more international cards and/or savings account in dollars and/or current account.
• Package intended for social security beneficiaries that includes, at minimum, the service of advance of pension benefits.

Validity:
23/06/2016
MONTHLY ACCOUNTING INFORMATION REGIME
15 – TRANSPARENCY INFORMATION REGIME
B.C.R.A.
Chapter II - Section 2. Monthly Information

Quantity of Products: It will be calculated at the end of each month for each product or segment/category taking into account the criteria exposed above. It is clarified that in the case of Credit Cards, the quantity of holder cards must be reported.

Tariffs:
The tariffs in effect must be reported, according to the concept included in the general instructions, of the commissions detailed taking into account the following provisions:
The tariffs will correspond to the maximum values in effect, without deducting bonuses, discounts or others. The amount will correspond to the price of an individual operation and will include VAT. The tariff amount for the complete period established in the “Periodicity” column will be reported, regardless of the billing modality. The tariffs will be reported in pesos, except for the ATM usage commission abroad, which will be reported in dollars.

Interest Rates:
The effective annual rate expressed as a percentage, with two decimals, will be reported, depending on the product:

• Savings Account: the minimum rate.
• Current Account: the maximum overdraft rate - with agreement -.
• Credit Card: the maximum compensatory interest rate for balance financing.
• Packages intended for social security beneficiaries that include the service of advance of pension benefits: the maximum rate.

Observations:
Clarifications regarding bonuses or the particularity of the product or package may be recorded, for all products, as appropriate.

Validity:
23/06/2016
MONTHLY ACCOUNTING INFORMATION REGIME
15 – TRANSPARENCY INFORMATION REGIME
B.C.R.A.
Chapter II - Section 2. Monthly Information

Subsection B: “Information on complete tariff”.
The universe of tariffs corresponding to the commissions and charges of the products and/or services offered to users of financial services will be detailed. It should be noted that this tariff must include the nomenclature commissions according to the preceding Subsection A and must comply with all the conditions and information required through point 2.4.2 of the C.O. of “Protection of users of financial services”. Likewise, the information that entities publish on their respective websites in compliance with said regulation must coincide with that submitted through this Subsection.

It must contain at minimum, the following data:

• Name of the entity.
• Month of validity of the tariff.
• Tariffs.

The tariffs will be expressed in the currency in which they are charged, as appropriate.
Bonuses, discounts or others will not be deducted, which must be reported as observations to the product. The amount will correspond to the price of an individual operation and will include VAT. The tariff amount for the complete period will be reported indicating the periodicity.

• Increases notified to clients.
  In those cases where an increase has already been notified to clients, the current tariff, the new one, and the percentage of variation must be included, detailing the effective date of said increase. If applicable, commissions of new products will be identified.
• Rates.
  Rates will be expressed as a percentage with two decimals.
• The commissions provided for in Subsection A must be incorporated into this tariff, with identical denomination to allow association.
• Charges will be reported for each product.
• The arrangement of products must respect the ordering established in Annex II.
• The font size of the complete tariff must comply with the requirements of point 2.3.1.1 of the C.O. “Protection of Users of Financial Services”.

Validity:
23/06/2016
MONTHLY ACCOUNTING INFORMATION REGIME
15 – TRANSPARENCY INFORMATION REGIME
B.C.R.A.
Chapter II - Section 2. Monthly Information

Subsection C: “Modifications of commissions on nomenclature tariff”.
Increases/reductions and/or additions of tariffs with respect to those detailed in Annex I must be reported. Information related to the current price, the expected price, the percentage of variation, and the effective date of the new tariff must be submitted.

Subsection D: “Modifications of other commissions and/or charges”.
Increases/reductions in tariffs and additions of commissions of new products and/or services they wish to market, not included in Annex I, will be recorded. Additionally, modifications to charges will be notified through this channel. Information related to the current price, the expected price, the percentage of variation, and the effective date of the new tariff must be submitted.

Additions of commissions must be specially identified, reporting the expected price, the application date, and a brief description of the new product and/or service. The arrangement regarding said modifications must respect the ordering established in Annex II.

Standard Note.
Together with the submission of Subsections C and D, a file with the standard note that the entity will timely send to its clients must be attached, as provided in Point 2.3.4 item iv) of the C.O. “Protection of users of financial services”.

Validity:
23/06/2016
MONTHLY ACCOUNTING INFORMATION REGIME
15 – TRANSPARENCY INFORMATION REGIME
B.C.R.A.
Chapter II - Section 3. Communication of tariff modifications

CHAPTER II - INFORMATION MODEL - ANNEX I
Code
Item Commissions in products and financial services Periodicity Tariff Effective Annual Rate Quantity Products Observations 010000 Savings Account 010100 Commission for issuance of additional debit card Occasional 010200 Commission for replacement of debit cards due to theft or loss Occasional 010300 Commission for use of ATM outside the entity's operational home Occasional 010400 Commission for use of ATM of another entity, same network Occasional 010500 Commission for use of ATM of another entity, different network Occasional 010600 Commission for use of ATM abroad Occasional 020000 Current Account 020100 Commission for current account maintenance Monthly 020200 Checkbook - 50- Occasional 030000 Credit Card Premium 031000 Black/ Signature 031100 Commission for issuance service Occasional 031200 Commission for renewal service Annual 031300 Commission for account administration and maintenance Monthly 031400 Commission for replacement or reprint of card due to theft or loss Occasional 031500 Commission for additional cards Occasional Version: 1st COMMUNICATION “A” 5993 Validity: 23/06/2016 Page 7 MONTHLY ACCOUNTING INFORMATION REGIME B.C.R.A. 15 – TRANSPARENCY INFORMATION REGIME

CHAPTER II - INFORMATION MODEL - ANNEX I (Continuation)
Code
Item Commissions in products and financial services Periodicity Tariff Effective Annual Rate Quantity Products Observations 032000 Platinum 032100 Commission for issuance service Occasional 032200 Commission for renewal service Annual 032300 Commission for account administration and maintenance Monthly 032400 Commission for replacement or reprint of card due to theft or loss Occasional 032500 Commission for additional cards Occasional 033000 Gold 033100 Commission for issuance service Occasional 033200 Commission for renewal service Annual 033300 Commission for account administration and maintenance Monthly 033400 Commission for replacement or reprint of card due to theft or loss Occasional 033500 Commission for additional cards Occasional 034000 International 034100 Commission for issuance service Occasional 034200 Commission for renewal service Annual 034300 Commission for account administration and maintenance Monthly 034400 Commission for replacement or reprint of card due to theft or loss Occasional 034500 Commission for additional cards Occasional Version: 1st COMMUNICATION “A” 5993 Validity: 23/06/2016 Page 8 MONTHLY ACCOUNTING INFORMATION REGIME B.C.R.A. 15 – TRANSPARENCY INFORMATION REGIME

CHAPTER II - INFORMATION MODEL - ANNEX I (Continuation)
Code
Item Commissions in products and financial services Periodicity Tariff Effective Annual Rate Quantity Products Observations 035000 National 035100 Commission for issuance service Occasional 035200 Commission for renewal service Annual 035300 Commission for account administration and maintenance Monthly 035400 Commission for replacement or reprint of card due to theft or loss Occasional 035500 Commission for additional cards Occasional 040000 Package intended for beneficiaries of social security benefits that include the service of advance of pension benefits - Commission for package maintenance service Monthly 050000 Packages Premium 051000 Black/ Signature - Commission for package maintenance service Monthly 052000 Platinum - Commission for package maintenance service Monthly 053000 Gold - Commission for package maintenance service Monthly Basic 054000 Basic - Commission for package maintenance service Monthly Version: 1st COMMUNICATION “A” 5993 Validity: 23/06/2016 Page 9 MONTHLY ACCOUNTING INFORMATION REGIME B.C.R.A. 15 – TRANSPARENCY INFORMATION REGIME

CHAPTER II
ORDER OF EXPOSURE OF PRODUCTS – ANNEX II a) For the purpose of complying with Subsection B, the following ordering must be followed:

1. Savings Account.
2. Savings Account in USD.
3. Current Account.
4. Credit Cards.
5. Packages.
6. Packages intended for social security beneficiaries.
7. Security Box.
8. Personal Loans.
9. Pledge Loans.
10. Mortgage Loans.
11. Client Account (operations with bonds, shares, etc.).
12. Insurance as non-accessory contracting to a financial service.
13. Other products.

b) Regarding the modifications included in Subsection D, the following scheme will be taken into account:

1. Increases in commissions.
2. Additions of commissions.
3. Modification of charges.
4. Reductions in commissions.
   Following in each of the aforementioned openings the product ordering cited in the preceding item a).

Validity:
23/06/2016
MONTHLY ACCOUNTING INFORMATION REGIME
B.C.R.A.
15 – TRANSPARENCY INFORMATION REGIME